Fewer stocks, same results
A focused fund may hold at most 30 stocks. A flexi-cap fund can hold as many as it likes. You might expect the concentrated funds to produce a wider range of results, better and worse, and a bumpier ride.
Over the three years to 16 September 2026, they did not. The two categories look almost the same.
| Median, to 16 Sep 2026 | Focused (28 funds) | Flexi Cap (46 funds) |
|---|---|---|
| 1 year | −0.80% | −0.26% |
| 3 years | 11.53% | 10.80% |
| 5 years | 10.94% | 10.39% |
| 10 years | 13.04% | 13.21% |
| Gap between quartiles, 3 years | 4.41 points | 4.64 points |
| Volatility, 3 years | 14.59% | 14.21% |
| Worst fall, 3 years | −17.85% | −18.46% |
All figures are for the Direct plan, Growth option, computed from daily NAVs to 16 September 2026. Returns of one year or more are compounded annual rates.
The spread, period by period
A fund counts in a period only if it has a full record for it.
| 1 year | 3 years | 5 years | 10 years | |
|---|---|---|---|---|
| Funds counted | 28 | 27 | 22 | 13 |
| Worst | −10.39% | 6.62% | 3.94% | 11.72% |
| Lower quartile | −2.28% | 9.07% | 9.48% | 12.58% |
| Median | −0.80% | 11.53% | 10.94% | 13.04% |
| Upper quartile | 3.54% | 13.48% | 12.60% | 14.78% |
| Best | 21.91% | 19.92% | 17.52% | 15.45% |
Over one year, 15 of 28 focused funds are down, and the last month weighs on that. Between the NAVs of 16 August and 16 September, the median focused fund fell 4.01%, and since the end of August it has lost 4.17%, a little more than the Nifty 500's 3.92% price fall over the same days.
Top and bottom over three years
| Fund (Direct, Growth) | 1 year | 3 years | 5 years | Worst fall, 3 years |
|---|---|---|---|---|
| Invesco India Focused | 0.64% | 19.92% | 14.39% | −21.73% |
| ITI Focused | 6.30% | 16.77% | −18.44% | |
| ICICI Prudential Focused | −1.57% | 15.43% | 14.76% | −16.76% |
| Bandhan Focused | 4.00% | 14.99% | 12.11% | −17.81% |
| SBI Focused | 9.36% | 14.29% | 11.21% | −12.86% |
| … | ||||
| Nippon India Focused | −2.14% | 8.25% | 9.87% | −17.58% |
| LIC MF Focused | −0.99% | 8.09% | −21.12% | |
| Baroda BNP Paribas Focused | −2.69% | 7.82% | −22.46% | |
| Franklin India Focused Equity | −10.39% | 6.81% | 9.25% | −17.85% |
| Mirae Asset Focused | −4.78% | 6.62% | 5.90% | −21.00% |
Over five years the leader is HDFC Focused at 17.52% a year, with the lowest volatility in the category, 11.76%. Axis Focused has the weakest five-year return, 3.94% a year.
The one real outlier is Motilal Oswal Focused. It has the best one-year return by far, 21.91%, and is up 20.48% in 2026. Over three years it also took the deepest fall of any focused fund, 31.25%, and its three-year return, 13.18% a year, is ninth.
Same fund house, two categories
Twenty-seven fund houses run both a focused and a flexi-cap fund with three-year records. Comparing them holds the house constant.
The focused fund returned more in 10 of 27. The median gap was 0.85 points a year in the flexi-cap fund's favour. Over five years the focused fund was ahead in 10 of 19 houses, and over one year in 14 of 27: close to a coin toss.
| Fund house | Focused, 3 years | Flexi cap, 3 years | Gap |
|---|---|---|---|
| SBI | 14.29% | 7.27% | +7.02 |
| Bandhan | 14.99% | 9.99% | +5.00 |
| Invesco India | 19.92% | 16.67% | +3.25 |
| … | |||
| Mirae Asset | 6.62% | 11.06% | −4.44 |
| 360 ONE | 10.50% | 16.11% | −5.61 |
On risk the pairs were just as even. The focused fund was the more volatile of the two in 17 of 28 houses, but had the smaller worst fall in 16 of 27.
Against the Nifty 500
We use the Nifty 500 as the yardstick for both. Our estimate of its total return, from NSE's daily price and dividend yield, to the close of 16 September:
| Period | Nifty 500, est. total return | Focused funds that beat it | Flexi caps that beat it |
|---|---|---|---|
| 1 year | −2.50% | 21 of 28 | 27 of 40 |
| 3 years | 9.68% a year | 18 of 27 | 27 of 36 |
| 5 years | 9.63% a year | 16 of 22 | 17 of 27 |
| 10 years | 12.98% a year | 7 of 13 | 12 of 18 |
What this does not tell you
Thirty stocks is still a lot of stocks. A fund with 30 holdings spread across sectors can behave much like one with 60. These numbers do not show how concentrated each fund actually is.
Three years is one stretch. The categories' similarity here may not hold over another period.
The benchmark is our estimate, and merged funds are not counted. Nothing here is advice to buy or sell any fund.
Where to go from here
Every fund is on the focused fund page and the flexi-cap fund page. Focused funds explained covers the 30-stock rule.
For the flexi-cap side in detail, read flexi-cap fund returns in August. For how every category stood at the end of August, see the August equity fund scorecard.
Frequently asked questions
What is the three-year return of focused funds?
To the NAV of 16 September 2026, the median focused fund (Direct plan, Growth option) returned 11.53% a year over three years, across 27 funds. The best, Invesco India Focused, returned 19.92% and the worst, Mirae Asset Focused, 6.62%.
Are focused funds riskier than flexi-cap funds?
Not by much, on three years of data to 16 September 2026. The median focused fund's annualised volatility was 14.59% against 14.21% for flexi caps, and its median worst fall was 17.85% against 18.46%. The spread of three-year returns was also similar: 4.41 points between the quartiles for focused funds, 4.64 for flexi caps.
Do focused funds beat flexi-cap funds?
Not consistently. Of 27 fund houses that run both with a three-year record to 16 September 2026, the focused fund had the higher return in 10, and the median gap was 0.85 points a year in the flexi-cap fund's favour. The category medians were 11.53% for focused funds and 10.80% for flexi caps.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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